New Delhi: The clean energy transition might be accelerated due to the covid-19 pandemic that has shown that power markets prefer renewable energy amidst falling demand, a Moody’s report suggests. “Coal generation has continued to decline, while renewables have shown more resilience across major markets in the US, Europe, China and India,” stated the report. The power demand in India has fallen by 20% due to the lockdown, with most of the impact on coal generation, they added. Both corporate as well as household power demand are expected to be heavily affected by recessionary growth and weaker long-term growth expectations. The production of conventional sources of energy such as coal and oil has also dropped, said the agency. Renewable energy made up the bulk of recent capacity additions to both in India as well as the world over, which continues to displace thermal generation. With a vast sharp decrease in power demand due to the lockdown, this trend is expected to continue, said Moody’s. “COVID-19 could have a ratchet effect, limiting any rebound in coal generation, and accelerating the decline of coal in the US and Europe by a few years,” said the ratings agency.
Power markets prefer renewable energy amid falling demand: Moody’s
